- Aeris Resources (AIS) has completed the sale of its Yandan Gold Exploration Project in North Queensland to GBM Resources
- GBM issued $3 million in shares to Aeris at a price of 13.5 cents each in exchange for the acquisition
- Aeris will also retain a 1.5 per cent net smelter royalty on the first 300,000 gold equivalent ounces mined from the Yandan tenements
- Additionally, Aeris has subscribed for a placement of shares worth $1 million, which will result in a total holding in GBM of roughly 6.85 per cent
- Shares in Aeris Resources remained steady at the close of trading yesterday at a price of $0.11 each
Aeris Resources (AIS) has completed the sale of its Yandan Gold Exploration Project in North Queensland to GBM Resources.
Located approximately 40 kilometres west of Mount Coolon and 155 kilometres south east of Charters Towers, the project sits on the eastern margin of the Drummond Basin, near the Pajingo, Ravenswood and Mt Leyshon mines.
Under the terms of the agreement, which was announced in October last year, fellow ASX-lister GBM issued $3 million in shares – 22.22 million shares at a price of 13.5 cents each – in exchange for the acquisition of Straits Gold, a wholly owned subsidiary of Aeris which owns 100 per cent of the Yandan Project.
Aeris will also retain a 1.5 per cent net smelter royalty on the first 300,000 gold equivalent ounces produced from the Yandan tenements.
“This acquisition represents an important milestone in the company’s Drummond Basin ‘processing halo’ strategy and delivers a step change in the company’s resource base, with GBM now controlling … in excess of 700,000 ounces of gold at the Mt Coolon and Yandan Projects…” Peter Rohner, Managing Director and CEO of GBM Resources, said in October.
In addition, Aeris has subscribed for a placement of shares in GBM worth $1 million. These shares will be purchased at a price of 13.5 cents each, and will result in a total holding in GBM of roughly 6.85 per cent.
“Taking an equity position in GBM in exchange for Yandan enables Aeris to maintain an exposure to the highly prospective Drummond Basin while we concentrate on our core producing assets,” said Andre Labuschagne, Executive Chairman of Aeris Resources.
Shares in Aeris Resources remained steady at the close of trading yesterday at a price of $0.11 each.